Date:01/03/2005 URL: http://www.thehindubusinessline.com/2005/03/01/stories/2005030101441900.htm

Back No effort to bring down deficit: S&P

Our Bureau

Mumbai , Feb. 28

GLOBAL rating agency Standard & Poor's Ratings Services said India's Budget for 2005-06 shows a lack of success in reducing the country's deficit burden.

"Government debt is the main obstruction to improvement in India's credit ratings and stands out in contrast to the many positive economic indicators displayed by India in recent years," said S&P's credit analyst Mr Ping Chew, Singapore-based head of Asia Sovereign and International Public Finance Ratings Group.

"The 2005-06 Budget does not provide for any significant reduction in the fiscal deficit, following a rather modest reduction in the previous year," Mr Chew said.